The biggest issue in Phoenix, AZ real estate right now is not the 2010 outlook or the 2009 report of doom. Rather, it’s on immigration law. As you might know, Arizona has one of the most stringent laws on immigration anywhere in the country. Right now, there is currently some controversy over this legislation. Namely, police now have the right to check the immigration status of any “suspicious looking” person. This leads many to wonder about racial profiling.
Across the nation, many cities and activist groups are calling for “boycotts of Arizona.” That means a lot, considering that tourism is one of the state’s biggest industries. The law, which has already passed, is being criticized by the White House and by various notable politicians. The biggest question: how will such boycotts and controversy affect the real estate industry?
There is already talk of the city of San Francisco cancelling contracts with all Arizona based companies, and even whispers of the city prohibiting its employees from doing business in the city. This hits close to home, considering that an investor from Los Angeles recently bought a major Phoenix-Scottsdale foreclosure property in 2010.
If this controversy continues, then there could be a major impact on the price of all Arizona properties. Arizona cannot afford to lose business right now, and its real estate market is still reeling from the affects of the housing bubble. If more immigrants leave the state then this too could have major repercussions on the state’s economy, which regularly generates over two million dollars in immigrant tax revenue alone.
One thing is for certain—now is the time to keep your eyes open for short sales, foreclosures and REO listings among Phoenix Arizona homes. These non-traditional types of sales may be the best opportunity for new homeowners in 2010 and onward.